In biggest layoff in China, coal company axes 100,000 workers

A coal company announced the biggest layoff seen in China in recent years as it is set to relieve 100,000 workers accounting for 40% of its labour force.Saibal Dasgupta | TNN | September 27, 2015, 12:53 IST

BEIJING: A coal company announced the biggest layoff seen in China in recent years as it is set to relieve 100,000 workers accounting for 40% of its labour force.

The announcement came in the midst of Chinese president Xi Jinping's ongoing tour to the United States, where he assured politicians and businessmen that China's economy will achieve the targeted 7% growth in gross domestic product.

Much of China's clout in the US is based on its economic achievements in past years. But the Chinese economy has slid from the earlier 10% growth level to the present situation where it is struggling to achieve 7%.

"Personnel is probably its largest cost," the State media quoted Deng Shun, an analyst at Shanghai-based energy consultancy ICIS C1 Energy, as saying. "Actually many traditional State-owned coal enterprises are facing the same kind of problem. It has become more severe as the industry remains on a downward trend," Deng said.